ISLAMABAD: In an interesting turn of events, the Islamabad High Court (IHC) on Wednesday granted bail to Shahid Hussain Khawaja, a co-accused in the Rs3.2 billion sales tax fraud case, against the surety bond of a meagre Rs100.
The court declared the tax department’s criminal probe as an excess of authority.
IHC Justice Babar Sattar directed to send a copy of the court’s order to the Federal Bureau of Revenue’s (FBR) Chairman Rashid Mahmood Langrial.
According to the verdict, the manager of a bank was arrested for helping in opening the account at a power company branch. It said that the state did not provide any material regarding the petitioner’s involvement in the tax fraud crime.
The court also said that the tax department did not determine the tax due on the taxpayer as per law. Moreover, the verdict said the tax department arrested the petitioner in violation of the Lahore High Court’s verdict.
The tax department initiated criminal proceedings despite being aware of the LHC’s verdict, said the IHC, adding that the FBR chairman should distribute the copies of LHC and IHC’s judgments to tax officers. The court said in case of violation, the tax collection authority and tax officers will face action for misuse of powers.
The IHC further remarked that the legal and police powers delegated to public officials should be exercised in accordance with law.
